Published on August 2nd, 2013 | by Donald McIntyre3
Motif Investing Review – What Is Motif Investing?
If investing in ideas is the best strategy then invest with Motif Investing:
Motif Investing is an online investment service. The company and its community create portfolios with up to thirty stocks called Motifs that represent specific investment ideas. Investors can buy whole portfolios in one trade for only $9.95. You can open an account by going to MotifInvesting.com.
Did you ever notice that you always have good investment ideas, but you usually buy the wrong stocks? If this is the case don’t worry because the majority of us are in the same situation!
Fortunately Hardeep Walia co-founder and CEO of Motif Investing is doing something about it. Through Motif Investing he enables investors to buy groups of stocks that will perform according to specific investment ideas like “clean technology”, “internet in china”, or “investing in a rising interest rate environment”.
Like any investment service or online broker, everything starts by registering on their website. First you enter your profile and “know your customer” information, and then fund your account to start investing. Before funding your account you can browse their catalog of Motifs and participate in their community to get a flair of how everything works.
Motif Investing is for the “do it yourself” investor in the sense that we have to make our own investment decisions. The difference is we are not alone. Part of the work is done for us since the company and the community create Motifs we can invest in. Also, there is a dynamic social network that shares and comments about the Motifs and investment ideas in general.
This is a description of the different features of the service:
It is a Finra registered broker dealer: The company is a broker dealer that complies with state and national SEC rules and regulations. Finra is the Financial Industry Regulatory Authority, the self-regulatory body that oversees all broker dealers in the US.
It is a social investment network: Investors, financial advisers, and Motif Investing staff participate in a Facebook-like social network where they comment and share about specific Motifs or idea investing in general. You can decide to invite your friends and in the privacy section filter who can see your investment activity or ideas. There are three levels of sharing; with the entire Motif community, with your friends, or with smaller circles of people you select.
The Motif Catalog: Like I wrote above, Motifs are up to 30 stock portfolios created by the company and the community. The catalog is where you can go to browse motifs, check their performance, see which stocks they have, comment, and decide whether to buy them with the click of a button. There are hundreds of Motifs and the catalog is very well organized and easy to use, with smart filters by idea, stocks, and other useful parameters.
Build your own Motifs:
Because the community also creates Motifs, in this section you can build your own portfolios. You start by naming your idea, selecting which stocks you want to include in your Motif, and then group them by categories. You can add an image so it is easy to identify and after that you just decide how much you want to invest and press the buy button. Like any Motif, for $9.95 you will buy all the stocks in the portfolio you created. If you want to share your idea you can select for the community to have access to your Motif in the catalog.
Account view and portfolio management: It is great to be able to explore Motifs and very easily invest in ideas, but some flexibility to adjust them to our preferences is also desirable. For this the account view is separated by Motifs and by stocks and you can analyze the asset allocation in your entire portfolio and other measures. This feature then lets you increase or decrease your holdings in specific stocks and even buy or sell stocks independently for $4.95 per trade.
Get paid! Since the Motifs you create can be shared and bought by other investors, why not get paid for it? The company is seeking approval from regulators so they can pay Motif builders each time someone buys their Motifs. This is a great way of moving the investment world into the share economy. Also, the company is going to enable “copy trading” which is the ability to set parts of your portfolio to copy what investors you like do on their own accounts.
Investment advisers: The platform is open for registered investment advisers (RIAs). They can setup client accounts and get compensated for referring new customers and investing their portfolios. In the near future these pros will also be able to promote their Motifs so they will be compensated when the community invests in them as well.
Motif Investing is an excellent new finance company that can help you invest in ideas rather than the old stock picking strategy that has brought so many headaches to investors for so long. For the ”do it your self” investor Motif Investing is a great place to open an account, talk to other investors, and invest in ideas that are proving to be the smarter investment strategy.
Demo: Hardeep Walia Shows How Motif Investing Works And The “Build Your Own Motif” Service: